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Banks ING and Targobank adjust interest rates

Banks Targobank and ING are once more altering the interest rates for fixed-term and immediate-access deposits. Here's what this modification could imply for investors.

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Financial institutions Targobank and ING are once more modifying the interest rates for fixed-term...
Financial institutions Targobank and ING are once more modifying the interest rates for fixed-term and immediate-access deposits. Here's what these adjustments may entail for investors.

Banks ING and Targobank adjust interest rates

Hot off the press! Major banks Targobank and ING, once more, shuffle interest rates

It's been a dry spell for good news on interest rates, but BÖRSE ONLINE has a refreshing alternative to dive into at the end of this read. Let's first dig into the latest adjustments to interest rates by our favorite banks - Targobank and ING:

ING refreshes first extra account interest rate

Everyone's favorite bank ING has decided to give its first extra account (instant-access deposit) a makeover. The interest rate, previously set at 3.00% p.a., is now adjusted to 2.75% p.a. as of March 31, 2025. ING shares the following tidbit: "Customers will relish an interest rate of 2.75% p.a. on their savings up to €250,000 for the first four months after account opening. This offer is valid until May 5, 2025, only." Despite the reduction in ING's instant-access deposit rates, they remain competitive. Curious about ING's interest rates? Click here.

For a consistent rundown, be sure to visit the BÖRSE ONLINE instant-access deposit comparison regularly.

Targobank spruces up fixed-term deposit interest rates

Targobank has also given its interest rates a facelift. Here are the new fixed-term deposit conditions:

  • 6-month term: 2.15% p.a.
  • 1-year term: 2.00% p.a.
  • 1.5-year term: 1.90% p.a. Keen on Targobank's fixed-term deposits? Check them out here.

Find other high-yield fixed-term deposits with the BÖRSE ONLINE fixed-term deposit comparison.

Wondering whatelse is out there? Well, there's an intriguing alternative worth exploring: an equity-linked bond. This strategy can help investors fetch higher interest rates. Give it a gander right here: Elevate your earnings - up to 11.00% p.a. with Siemens' yield and dividend strategy

Disclaimer: This comparison features so-called affiliate links. We offer you free information, sometimes compensated when you click on these links (e.g., "Open Account"). These affiliate links and related compensation do not impact our content. Our goal is to provide you with objective information and unbiased advice.

Legal disclaimer: This comparison is not an exhaustive market overview (§ 18 Abs. 6 ZKG). All information is provided without warranty, subject to change, and errors may occur.

Now, let's break it down for you. The adjustments to interest rates by banks like Targobank and ING can pack quite a punch for investors with fixed-term and instant-access deposits. Consider these aspects:

Impact of Interest Rate Adjustments

  1. Fixed-Term Deposits:
  2. Higher Returns: With higher interest rates, fixed-term deposits offer greater returns as a low-risk investment option.
  3. Liquidity Pitfalls: Keep in mind that fixed-term deposits typically tie up your funds for a set period, and withdrawals prior to maturity could incur penalties.
  4. Instant-Access Deposits:
  5. Flexibility: Instant-access deposits offer the perk of liquidity amidst economic uncertainties.
  6. Rate Variability: Instant-access deposits might experience more frequent rate fluctuation compared to fixed-term deposits, which could affect your returns based on market conditions.
  7. Inflation Factors:
  8. Shielding Your Savings' Power: Higher interest rates protect the buying power of your savings, keeping pace with inflation.
  9. Risk Aversion: Investors who crave low-risk investments may lean towards fixed-term deposits in periods of high interest rates, due to their predictable returns.
  10. Market Impact:
  11. Lending and Borrowing: Alterations in interest rates can sway lending and borrowing costs, affecting the overall economy and potentially impacting your investment choices.
  12. Investment Strategy: Investors may tweak their portfolios by moving between fixed-term and instant-access deposits based on interest rate conditions.
  13. Banking Sector Dynamics:
  14. Competition: Banks, such as Targobank and ING, might revise their interest rates to stay competitive within the market, potentially benefiting investors with superior rates.
  15. Regulatory Environment: Interest rate changes may also be influenced by regulatory requirements, such as ensuring adequate liquidity within the banking industry.

In a nutshell, interest rate adjustments can significantly influence your decision between fixed-term and instant-access deposits, shaping their appeal based on liquidity requirements, risk tolerance, and return aspirations.

  1. The adjustments to interest rates by Targobank and ING can influence investment decisions, especially for those considering fixed-term and instant-access deposits.
  2. For instance, Targobank's increased fixed-term deposit rates could lead to higher returns for investors seeking low-risk investment options, while ING's revised instant-access deposit rates may appeal to those seeking flexibility amidst economic uncertainties.

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